In a move to adjust its capital structure, Sonim Technologies Inc . (NASDAQ:SONM) has implemented a 1-for-10 reverse stock split of its common stock. The reverse split became effective as of 5:00 p.m. Eastern Time on Tuesday, July 17, 2024, and the stock began trading on a split-adjusted basis on Wednesday, July 18, 2024.
The decision to enact a reverse stock split was previously approved by Sonim's shareholders at the annual meeting on June 20, 2024, and the final ratio was determined by the company's board of directors. As a result of the reverse split, every ten shares of the pre-split common stock were combined into one share of common stock. The par value of the stock remains unchanged.
In instances where the reverse split results in a stockholder owning a fractional share, Sonim will issue one full share of common stock in place of any fractional share. This ensures that no fractional shares are issued and all stockholders maintain whole share ownership post-split.
The reverse stock split has led to a new CUSIP number for Sonim's common stock, which is 83548F 309. The company's trading symbol on the Nasdaq Capital Market will remain "SONM."
This strategic action is part of Sonim's efforts to align its stock structure with its long-term business objectives. The modification to the rights of security holders and the change in the company's certificate of incorporation have been detailed in a certificate of amendment filed with the Secretary of State of the State of Delaware.
The information provided in this article is based on a press release statement issued by Sonim Technologies Inc.
InvestingPro Insights
In the wake of Sonim Technologies Inc.'s reverse stock split, investors and potential shareholders may be seeking deeper insights into the company's financial health and market performance. According to InvestingPro data, Sonim holds a market capitalization of 19.35 million USD, which can be a critical indicator of the company's size and market value. Despite a challenging period, with a reported revenue growth of -34.98% in the most recent quarter, the company still managed a positive annual revenue growth of 2.71%. This suggests that while Sonim faces headwinds, it's not without its areas of resilience.
One of the InvestingPro Tips highlights that Sonim holds more cash than debt on its balance sheet, which can be a sign of financial stability and may provide some reassurance to investors concerned about the company's ability to manage its capital structure effectively. Additionally, the company's stock price has experienced significant volatility recently, with a one-week price total return of -18.96% and a one-month return of -48.24%, reflecting the high-risk nature of the investment.
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